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Marketing-mix modeling helps AT&T boost its ROI from TV
Geoffrey Precourt, Event Reports, ARF Audience Measurement, June 2013
AT&T, the wireless carrier, wanted to gain in-depth insights into the ROI from its three main forms of television output: cable, broadcast networks and sponsorship.
AT&T, the wireless carrier, wanted to gain in-depth insights into the ROI from its three main forms of television output: cable, broadcast networks and sponsorship. To do so, the company looked back over its commercials and sponsorships during the last three years, assessing when and where they ran, and measuring rating points against efficacy metrics. Sponsorship was found to drive short-term sales most effectively, but was also a more expensive option than the other formats. In response to this finding, AT&T used marketing-mix modeling to reallocate a portion of its expenditure, and thus increased its television payback by 21%.
The Secret Sauce for Super Bowl Advertising: What Makes Marketing Work in the World's Most Watched Event?
Jin-Woo Kim, Traci H. Freling, and Douglas B. Grisaffe, Journal of Advertising Research, Vol. 53, No. 2, 2013, pp. 134-149
This study investigated the relationship between Super Bowl advertising and advertisers’ market valuation, identifying several factors that influence the financial rewards of this media-placement strategy.
This study investigated the relationship between Super Bowl advertising and advertisers’ market valuation, identifying several factors that influence the financial rewards of this media-placement strategy. Specifically, the authors examined the impact of each commercial’s featured characters and appeals—and the product benefits promoted—on abnormal stock returns for sponsoring companies that appear in Super Bowl advertising. Event study results showed that Super Bowl advertising is positively related to abnormal stock returns for advertisers. Cross-sectional regression analyses also indicated that market value of Super Bowl advertisers is positively related to likeable characters, emotional appeals, and approach messaging. The combined use of likeable characters with either emotional appeals or approach messages also is positively associated with firm valuation.
Media research: Magazines make their mark
Jim Jarrett, Marcos Perreira and Marius Cloete, Admap, April 2013, pp. 27-29
'Magonomics' analytics suggests that brands should reconsider magazines as a media choice and increase ad investment.
'Magonomics' analytics suggests that brands should reconsider magazines as a media choice and increase ad investment. The reader relationship has always been at the heart of the business argument for magazines as it crosses over into the reader's relationship with the magazine's advertising. However, there has been little empirical evidence of this claim, leaving unanswered questions about how this translates into return on investment and how the medium's performance compares with other media. To prove the real value of the reader relationship, the Professional Publishers Association engaged several metrics, designed to account for the unique way that consumers engage with magazines. The key finding demonstrated that magazines offer the highest ROI of any media channel.
Speed Read - Celebrate effectiveness
Nick Southgate, Warc Exclusive, April 2013, pp. 47-47
This book details all the 24 gold and silver-winning papers from the IPA's Effectiveness Awards and summarises the 11 bronze winners.
This book details all the 24 gold and silver-winning papers from the IPA's Effectiveness Awards and summarises the 11 bronze winners. It also includes six new learning chapters. The papers offer templates for others to emulate and provide useful learnings such as how to combine traditional long-length TV advertising with a digital campaign in the case of Grand Prix winner John Lewis, and how to reposition a brand by repositioning the competition in the case of Aldi. There are also papers demonstrating how advertising works over the long term.
RapidMMM: Richer, faster and affordable marketing mix models
Patralekha Bhattachary and Krishna Mehta , ARF Experiential Learning, Re:Think conference, 2013
This paper argues that the time and costs involved in building a marketing mix model implies that model rebuild is an infrequent phenomenon and often the performance of these models deteriorate significantly - before they are evaluated and improved.
This paper argues that the time and costs involved in building a marketing mix model implies that model rebuild is an infrequent phenomenon and often the performance of these models deteriorate significantly - before they are evaluated and improved. This can limit the ability of firms to react quickly to changing market conditions. This paper discusses RapidMMM, a proprietary solution which uses advanced statistical and machine learning techniques to build marketing mix models within hours. The authors argue this solution reduces the time and costs involved with building a marketing mix model, making these models affordable to a larger cohort of media planners.
In search of digital ROI: Best practices for including digital data in marketing mix modeling
Eric Schmidt, ARF Experiential Learning, Re:Think conference, 2013
This paper examines the challenges of including digital data in marketing mix models and suggests some best practices for determining its sales impact and ROI.
This paper examines the challenges of including digital data in marketing mix models and suggests some best practices for determining its sales impact and ROI. To better understand how to make mix decisions, it considers the unique difficulties in measuring three digital media types - online display, search (paid), and social word-of-mouth (buzz). Once the metrics have been determined, they must be combined with other sales drivers in a sales response modeling framework. Results are developed in a consistent framework with 'traditional' media to allow resource allocation decisions across the entire mix.
Sports sponsorship: Lessons from London 2012
Claire Carmichael, Market Leader, Quarter 2, 2013, pp. 17-18
This paper provides a general overview of sports sponsorship issues surrounding the 2012 Olympic Games held in London.
This paper provides a general overview of sports sponsorship issues surrounding the 2012 Olympic Games held in London. It argues that, when brands buy the rights to the Olympic Games, they gain the opportunity to engage with the passions of at least half the world's population. But buying rights only gives sponsors the canvas for their campaign. Only through effective activation can they create a picture that truly engages their audience. The paper identifies six key learnings for brands that emerged from London 2012, the most important of which is the need for effective mobile integration.
Mythbuster: Marketing's obsession with efficiency
Les Binet and Sarah Carter, Admap, February 2013, pp. 9-9
Les Binet and Sarah Carter explain the difference between return on investment (RoI)and profitability when measuring the effectiveness of campaigns and why people believe that RoI is a good thing without any real appreciation of what it means.
Les Binet and Sarah Carter explain the difference between return on investment (RoI)and profitability when measuring the effectiveness of campaigns and why people believe that RoI is a good thing without any real appreciation of what it means. They question how people came to believe that they were interchangeable ideas and look at the general confusion around efficiency and effectiveness. They demonstrate that measuring profitability is to measure the effectiveness of a campaign, while measuring RoI is to its measure efficiency.
Warc Trends: Seriously Social - A casebook of effectiveness trends in social media campaigns
Peter Field and Carlos Grande, Warc Trends, January 2013
This full version of the 'Seriously Social" Warc Trends Report (also available in summary form) identifies and explores effectiveness trends across approximately 800 recent case studies on Warc that contained a social media element.
This full version of the 'Seriously Social" Warc Trends Report (also available in summary form) identifies and explores effectiveness trends across approximately 800 recent case studies on Warc that contained a social media element. It includes quantitative analysis of patterns in media channel selection, duration and campaign budgets across this body of cases, and compares cases with social media elements that won Gold Awards to those that did not win Golds. Additional charts identify the heaviest sector and brand users of social media among Warc cases. The report also discusses the key issues facing social media marketers.
Communication: Dawn of creation for Asia
Tim Broadbent, Market Leader, Quarter 1, 2013, pp. 50-52
Effectiveness is becoming increasingly important in Asia - and creativity is its biggest driver. Asian advertising has traditionally relied on rational arguments and product demonstrations, rather than creative, emotional appeals, giving rise to the myth that creativity does not work effectively with Asians.
Effectiveness is becoming increasingly important in Asia - and creativity is its biggest driver. Asian advertising has traditionally relied on rational arguments and product demonstrations, rather than creative, emotional appeals, giving rise to the myth that creativity does not work effectively with Asians. Tim Broadbent explains why this is not the case and provides a creativity checklist to help marketers take advantage of the huge opportunity the region represents.
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